The Body Shop - Case Update

Various sources are reporting that a consortium led by British entrepreneur Mike Jatania is nearing a deal to acquire The Body Shop out of administration.

The Body Shop, the UK arm of an almost 50-year-old cosmetics company, entered administration on 13 February following “damp revenues during the crucial festive period”. Anthony Wright, Geoffrey Rowley and Alastair Massey of FRP Advisory were appointed joint administrators, and initially outlined proposals for a CVA that would see landlords taking rent cuts in an attempt to allow the company to be rescued from administration and continuing to trade under the ownership of Aurelius, which took over the company just three months before the administration.

In late May, the joint administrators announced that an auction would be commenced following the conclusion that a CVA was not feasible. Next, Aurelius, Authentic Brands Group, Gordon Brothers and private equity firm Alteri are all understood to have participated in the auction process at some point.

Now, Aurea Holding, an investment firm that Jatania allegedly runs with a consortium including former UBS Group AG banker Paul Raphael and Charles Denton, who was previously CEO of fragrance and beauty brands Molton Brown and Erno Laszlo, is said to be in exclusive talks to acquire The Body Shop after beating out rivals in the auction process.

The new owners reportedly plan to retain all of The Body Shop’s UK stores. No firm deal has been reached.